EUR/USD outlook: Bearish techs and weak fundamentals keep the euro under strong pressure

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro is consolidating above new 5 ½ month low (1.1186) in early Thursday, but maintains firm bearish tone, reinforced by the recent break of pivotal Fibo support at 1.1290 (61.8% retracement of 1.0635/1.2349 ascend) and probe below 1.1200 handle.

Weak German data (the economy grew at a slower pace in Q3 and consumer morale was soured by high inflation and new wave of coronavirus) are expected to add to Euro’s negative sentiment and keep in play increased risk of further fall.

Bears pressure support at 1.1168 (mid-June 2020 higher base) the last obstacle on the way towards 1.1040 (Fibo 76.4% of 1.0635/1.2349) and psychological 1.10 support.

Limited correction should be expected in coming session as daily RSI is oversold and bearish momentum shows signs of fatigue.

Solid resistance at 1.1300 zone (broken Fibo 61.8% / falling 10 DMA) should ideally cap, with extended upticks to stay under 1.1373 (Nov 18/19 lower tops).

Res: 1.1255; 1.1290; 1.1301; 1.1373.
Sup: 1.1186; 1.1168; 1.1100; 1.1040.

Interested in EUR/USD technicals? Check out the key levels

1. R3 1.1314
2. R2 1.1285
3. R1 1.1245
PP 1.1216
1. S1 1.1176
2. S2 1.1147
3. S3 1.1107

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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